Duolingo is a language learning platform which shares are trading 65% off last year peaks. However, company financials are in excellent condition. Revenues were up by 46% to $81.2 million in the Q1 2022, while Wall Street analyst were expecting $77.5 million only. Bookings increased by 55% to $65.8 million. Such dynamics highlights the ability of the company to maintain similar revenue growth in coming months. Paid subscriptions rose by 60% year-on-year to 2.9 million, active users number increased by 31% year-on-year to 12.5 million.

The company is working to improve users’ engagement plan. This plan included rebranding in Q3 2022 for Duolingo Plus to Super Duolingo, gamification features would be added to the learning process. The company is planning to revamp app’s home page design to motivate user to use the app more frequently.

Doulingo is leading the language learning apps segment with a great expansion potential. The company has three sources of revenues: paid subscription, advertising and English language qualification exams administration. Rising travel activity may increase the demand for language learning services. Doulingo may also expand its products line with a math training courses to monetize its clients’ base even more.

Mid-term target price for DUOL is at $90.